Bittrex Crypto Company Stops Its Services In The US, Is Regulatory Constrained?

Bittrex crypto exchange companies stop their services in the US. (Photo; Doc. Crypto Facility)

JAKARTA - The Bittrex Crypto Exchange founded in 2014 is one of the world's oldest and leading cryptocurrency exchanges. The crypto exchange company will reportedly end its services in the US by the end of this month. This decision was taken after facing growing regulatory challenges from US authorities, such as the SEC and CFTC.

Bittrex announced this through its official Twitter account on Friday, March 31, saying that they could not continue their operations in the US because of regulatory uncertainty that continues. They added that all customer funds are safe and can be withdrawn at any time before the closing date.

The decision surprised many customers and industry watchers, who wondered what the real reason behind Bittrex's withdrawal from the US market was. Some speculations include possible pressure from US authorities, fierce competition from other exchanges such as Coinbase and Kraken, or internal problems in Bittrex management.

Bittrex CEO Richie Lai said the exchange was founded nine years ago with a vision to build an inclusive and innovative crypto ecosystem. However, he complained that current regulatory requirements are often unclear and unfair, making it difficult for Bittrex to compete in the US market.

Bittrex advises its US customers to withdraw their cryptocurrencies before April 29 and withdraw their fiat before April 24 for thewire and April 27 for ACH. The exchange also emphasizes that this shutdown does not affect non-US customers who use the Bittrex global platform.

Bittrex isn't the only crypto exchange facing pressure from US regulators. The SEC has cracked down on several other crypto exchanges, such as Coinbase and Kraken, over a variety of issues such as stake programs and token offerings. Meanwhile, the CFTC has sued Binance and its CEO, CZ, over alleged illegal trade in the US.

The closure of the US Bittrex operation dealt a major blow to the US crypto industry, which already faces many regulatory and legal barriers. The SEC has targeted several crypto companies, such as issuing Wells notifications to Coinbase and filing charges against Kraken over the stock exchange staking program.

SEC chairman Gary Gensler recently asked for more funding for his agency to combat abuses in the crypto space. He claims that all crypto tokens, except bitcoin, are securities.